London Daily

Focus on the big picture.
Saturday, Jul 04, 2026

British Gas profit expectations downgraded because of 'warm weather'

British Gas profit expectations downgraded because of 'warm weather'

Centrica reveals more help for vulnerable households as it updates the market on its financial performance, saying the group as a whole will deliver a better result than many analysts expect.
The parent firm of British gas has revealed further aid for struggling customers while downgrading profit expectations for its household supply division because of weaker demand.

Centrica said: "Warmer than normal weather in October has contributed towards lower volumes and profits in British Gas Energy".

It also pointed to "broader inflationary and economic pressures" hitting the cost base and customer numbers in British Gas Services & Solutions.

It added: "As a result, we expect adjusted operating profit in our retail division to be lower than current expectations."

Centrica made the announcement as consumer groups and surveys report surging numbers of households leaving the heating off as temperatures drop because of record prices for gas and electricity.

While household energy bills have soared, the wider cost of living crisis is further squeezing spending power.

Inflation is running at a 40-year high of 10.1% and is tipped by the Bank of England to peak at around 11% - lower than it had initially thought.

That is largely because the government's energy price guarantee covering wholesale prices will limit bill increases this winter.

However, it sees rising interest rates to tackle inflation resulting in the average household facing a £3,000 annual increase in their mortgage costs.

That more than outweighs any government help with energy bills.

Centrica said of British Gas: "With over 10 million customers, we are acutely aware of the difficult environment facing many people and we remain committed to doing what we can to support those who need our help most.

"Today, Centrica is announcing an additional £25m of help for our customers, taking the amount we have invested in voluntary customer support this year to £50m.

Its shares soared by up to 9% on its wider trading update, however, as it was intended to set the market straight on the group's financial performance as a whole.

It indicated that many of the analysts who watch its performance might be making overly cautious predictions.

Centrica said group earnings per share were likely to be closer towards the 26p that the most optimistic experts expect than the 15.1p that the most pessimistic have forecast.

"Centrica has continued to deliver strong operational performance from its balanced portfolio since its interim results in July and now expects full-year adjusted earnings per share to be towards the top end of the range of more recent sell-side analyst expectations," its statement said.

The parts of the business that generate electricity and extract gas from under the ground have performed well in recent months.

The company also announced a share buyback of around £250m.
Newsletter

Related Articles

0:00
0:00
Close
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
London Casino Faces Legal Action Over Alleged Tip Distribution Practices
England Records Hottest June on Record as Heatwave Disrupts Services Nationwide
UK Foreign Office Ends Overseas Education Programme for Women and Girls After Shortfall
UK Lawmakers Call for Urgent Action to Preserve Historic Outdoor Lidos
Police Criticise Extended Pub Opening Hours for England World Cup Fixture in Mexico
UK Safety Authorities Warn Parents Over AI-Generated Child Abuse Imagery Risks
Reform UK-Led Council Struggles to Attract Sponsors for Union Flag Promotion Scheme
OpenAI UK Investment Uncertainty Grows After Reported Setback on Stargate Data Centre Site
British Medical Association Warns of Severe Financial Crisis and Possible Staff Cuts
UK Devolution Debate Intensifies as Celtic Nations Prepare Breakup Contingency Plans
Starmer Signals Labour Transition as Burnham Emerges as Potential Successor
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
Transport for London Warns of Severe Disruption as Major Events Converge in Central London
NHS and Social Care Sectors Face Ongoing Recruitment Shortages Amid Persistent Workforce Gaps
Rising Energy Costs Drive Price Pressures Across UK Retail and Service Sectors
Competition and Markets Authority Expands Review of Artificial Intelligence Impact on UK Media Markets
UK Parliamentary Committees Intensify Scrutiny of National Security and Industrial Policy Legislation
Bank of England Faces Persistent Inflation Pressure as Rate Cut Expectations Fade
UK Public Finances Under Pressure as Borrowing Exceeds Forecast and Debt Nears 95% of GDP
Major Police Deployment Across Central London as Mass Demonstrations and Pride Parade Converge
Large-Scale Police Dispersal Powers Activated in Liverpool Ahead of Anti-Immigration Protests and Counter-Demonstrations
Luxury bags take over the World Cup: style, status symbol, or just showing off?
National Productivity Institute Highlights Weak Business Investment Outside Southern England
UK High Court Orders Reassessment of Environmental Impact in Major Highway Project
UK Cyber Security Centre Warns of Rising Threat From State-Sponsored Digital Espionage
UK Education Secretary Launches National Reform of Apprenticeships and Vocational Training
Financial Conduct Authority Tightens Climate Risk Disclosure Requirements for Listed Firms
Rail Union Suspends Planned Strike Action to Enter Formal Negotiations With Operators
Northern Ireland Businesses Seek Clarity Over Post-Brexit Trade Rules
Welsh Government Launches Regional Growth Plan Targeting Transport and Digital Infrastructure
North Sea Wind Sector Attracts £5 Billion Investment Amid Expansion of Offshore Capacity
Scotland and UK Governments Establish New Framework for Coordinated Investment in Energy and Infrastructure
UK Government Launches Major Immigration and Border Policy Overhaul Review
Bank of England Signals Interest Rates to Remain Elevated Despite Easing Inflation Pressures
National Health Service Warns of Severe Winter Capacity Strain Across Hospital Trusts
Chancellor Orders Urgent Treasury Review Amid Concerns Over Structural Public Finance Gap
Prime Minister Unveils Sweeping Legislative Programme Focused on Housing, Health Service Reform and State Energy Plan
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
×